Trade Insurance Fund, First Venture Investment as Pension Fund Investment Pool

[Financial News] The Ministry of SMEs and Startups announced on the 27th that it will jointly invest 40 billion KRW through the 'LP First Step Fund Investment Announcement' with the Mother Fund and the Pension Fund Investment Pool.
LP First Step Fund is a newly established fund this year to encourage venture investment participation by institutional investors such as pension funds and financial companies with no experience in venture investment association contributions. The Mother Fund provides enhanced incentives such as priority loss compensation, excess profit transfer, and equity purchase rights, and the initial investor can freely set the investment field.
The main entity that first stepped up to invest in the venture fund is the Trade Insurance Fund, which is managing part of its surplus assets through the Pension Fund Investment Pool. This is the first venture investment since the Pension Fund Investment Pool system was introduced in 2001 to efficiently integrate and manage surplus assets of pension funds.
The LP First Step Fund was established on the 18th after discussing the investment suitability of the Pension Fund Investment Pool through the Investment Pool Operating Committee and deliberation and resolution by the Asset Management Committee of the Trade Insurance Fund, the investment entity.
The Trade Insurance Fund and the Mother Fund each invested 20 billion KRW to create the Mother Fund, and through this investment project, it plans to select a sub-fund management company with a scale of 57 billion KRW. The sub-fund plans to focus on the 'secondary' field reflecting the investment demand of the initial investor, the Trade Insurance Fund, and is expected to contribute to revitalizing the recovery market.
Minister Han Seong-sook stated, "Venture funds are a key tool of 'productive finance' that supports investment growth in innovative ventures and startups and distributes the fruits of growth to investors as profits," and "Despite mainly investing in public-interest fields, the Mother Fund has achieved stable profits of over 8% annually and over 10% in the past five years, proving to be a useful means for surplus funds such as pension funds to earn stable profits."
Minister Han added, "The LP First Step Fund has opened the door for the Pension Fund Investment Pool to transition to productive finance," and "We will strengthen the role of the Mother Fund as a venture investment platform so that many public and private surplus funds can flow into the venture investment market."

stand@fnnews.com Seo Ji-yoon Reporter